After a rough patch of two years led by the pandemic, consumer durables companies now seem to be optimistic about a revival in the sector. Panasonic India plans to increase its marketing spend by 35-40% in FY23 compared to the previous financial year. With this, the company claims that the marketing and advertising spend will be in line with pre-Covid levels. Digital including social media, video ads, display ads, influencer marketing, among others, is expected to take the lead with roughly about 45-50% share of the overall ad spends followed by TV at 30% and the balance is likely to be split between print, OOH, and radio. “This is the third year when digital will take the lead in terms of ad spends. Digital is where consumers are searching, discovering and researching and the medium continues to play an important role when it comes to consumer durables purchase,” Shirish Agarwal, head brand and marketing, Panasonic India, told BrandWagon Online.
With the onset of the summer season, the company has rolled out a new campaign ‘AC for healthier homes’ to promote the company’s smart range of air conditioners. “People are fast realising that the four walls of their homes may be secure but not necessarily healthy. With health and hygiene emerging as the top priorities for consumers today, the new campaign conveys the value propositions of Panasonic’s smart ACs,” Agarwal added. The company claims that between 40-45% of the budget allocated to the campaign will be spent on TV, the remaining 30-35% will be directed towards digital and the rest on print and OOH depending on the market needs. On TV, the company will advertise on news channels well as the forthcoming Indian Premier League (IPL). In the case of IPL, it claims that it will advertise in the initial 20 days of the game. For Agarwal, TV as a medium will help to drive reach. The campaign is being rolled out in Kerala first on February 18 followed by Andhra Pradesh, Karnataka, Tamil Nadu, followed by others states by March 18, 2022.
According to a Google-Boston Consulting Group report, by 2023, 63% of total consumer durable sales is expected to be digitally influenced. The report also stated that digitally influenced buyers typically research for two-three weeks before making the final purchase. For Panasonic India, digital has emerged as a big contributor to the overall business across different categories. For instance, online/e-commerce channel accounts for about 33% of the overall sales for TV, while for microwaves, washing machines, air conditioners and refrigerators, the share of online channels stand at 34%, 15%, 12% and nine percent, respectively.
As part of its digital strategy, the company, which has so far been present across e-commerce platforms such as Flipkart, Amazon, Croma, Reliance Digital, among others, now plans to launch its own direct-to-consumer platform. “D2C helps in getting first-party data which finally helps in sharp targeting and customising communications according to consumers’ preferences. We are in the pilot stage. By the second quarter (April-June), we will go live through our D2C platform,” Agarwal added.
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